Actually, I think there are 3 stages in a correction:
1. Disbelief – Impossible. Everyone needs a roof over his head. Real estate is different from stocks. One can live in a house. One cannot live in a stock.
2. Acceptance – Yeah, prices have been down. But, we are near the bottom.
3. Despair – House are terrible investments …
In San Diego, I think most people are in stage 2. There are a few in stage 1 (these people haven’t pull their heads out of the sands).
